Cryptocurrency billionaire Sam Bankman-Fried’s FTX will exclude loans to bankrupt Singapore hedge fund Three Arrows Capital as it partially bails out crypto crash victim Voyager Digital.
FTX would offer Voyager customers access to some of their funds in the latest relief measure for the ailing crypto industry.
Under the plan, Alameda Ventures, the trading firm also founded by Bankman-Fried, would purchase all of Voyager’s digital assets and digital asset loans, except the Three Arrows obligation.
Voyager’s customers could then receive some of those funds if they open an account with FTX. Such customers could either withdraw the cash balance immediately or use it to make purchases on FTX’s platform, the company said.
FTX expects to close the deal in early August despite the ongoing crypto crash. Participation in the plan would be voluntary, the company added.
Voyager filed for Chapter 11 bankruptcy earlier this month. In June, the company had signed an agreement with Alameda Ventures for a revolving line of credit.
Bankman-Fried has become the white knight of the crypto crash in recent weeks, throwing lifelines to digital asset platforms that have stumbled.
- Reuters, with additional editing by George Russell